A. 1.5134 B. 1.5139 - A. 1.5134 B. 1.5139 X A.12 B.3 C.1 D.4 = A -0.00132 B. -0.00159 C. -0.00106

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A. 1.5134 B. 1.5139 A.12 B.3 C.1 D.4

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Therefore, the uk is at a A. pREMIUM B. DISCOUNT against the uS dollar, because it is worth A. LESS B.MORE in the 3 moth forward market than in the spot market.

7. The forward rate Aa Aa E Suppose the selling price of three-month forward UK pounds is $1.5134 per pound and the spot price is $1.5139 per pound. Complete the following formula for the per-annum percentage premium (or discount) to calculate what the pound is worth in the three-month forward market